MarketAxess Reports Fourth Quarter 2012 Revenues of $50.4 Million, Pre-Tax Income of $21.5 Million and Diluted EPS of $0.54, or

  MarketAxess Reports Fourth Quarter 2012 Revenues of $50.4 Million, Pre-Tax
  Income of $21.5 Million and Diluted EPS of $0.54, or $0.36 Excluding an
  $0.18 Favorable Income Tax Adjustment

 Company Announces Increase of Regular Quarterly Dividend to $0.13 per Share,
                                up from $0.11

Fourth Quarter Financial Highlights^*

  *Revenues of $50.4 million, up 11.6%
  *Expenses of $28.9 million, up 9.9%
  *Diluted EPS of $0.54, or $0.36 excluding an $0.18 favorable tax
    adjustment, up from $0.29
  *Record estimated U.S. high grade market share of 13.6%, up from 12.2%

^*All comparisons versus fourth quarter 2011.

Full Year 2012 Financial Highlights^**

  *Record revenues of $198.2 million, up 9.4%
  *Record pre-tax income of $86.7 million, up 10.1%
  *Diluted EPS of $1.59, or $1.41 excluding an $0.18 favorable tax
    adjustment, up from $1.20

^**All comparisons versus full year 2011.

Business Wire

NEW YORK -- January 30, 2013

MarketAxess Holdings Inc. (Nasdaq: MKTX), the operator of a leading electronic
trading platform for U.S. and European corporate bonds, emerging markets bonds
and other types of fixed-income securities, today announced results for the
fourth quarter and full year ended December 31, 2012.

“We are very pleased to announce record revenues, operating income and EBITDA
for the full year 2012,” said Richard M. McVey, chairman and chief executive
officer of MarketAxess. “In the fourth quarter we also achieved record market
share in U.S. high-grade, and quarterly volume records for high yield and
emerging markets demonstrating our ongoing strong growth in these products.
Our open trading initiatives continue to gain traction and we are excited to
be at the center of market structure changes that are driving increased
electronic trading in credit.”

Fourth Quarter Results

Total revenues for the fourth quarter of 2012 increased 11.6% to $50.4
million, compared to $45.1 million for the fourth quarter of 2011. Pre-tax
income was $21.5 million, compared to $18.9 million for the fourth quarter of
2011, an increase of 14.1%. Pre-tax margin was 42.7%, compared to 41.8% for
the fourth quarter of 2011. Net income totaled $20.5 million, or $0.54 per
share on a diluted basis, compared to $11.5 million, or $0.29 per share on a
diluted basis, for the fourth quarter of 2011. The fourth quarter 2012 results
include a favorable income tax adjustment of $6.7 million, or $0.18 per share,
relating to certain previously unrecognized tax benefits. The Company received
new information from a taxing authority in the fourth quarter of 2012 and
updated the recognition of certain acquired net operating loss carryforwards.
Excluding this income tax adjustment, net income totaled $13.7 million, or
$0.36 per share on a diluted basis.

Commission revenue for the fourth quarter of 2012 totaled $44.2 million on
total trading volume of $149.1 billion, compared to $38.8 million in
commission revenue on total trading volume of $125.2 billion for the fourth
quarter of 2011. U.S. high-grade trading volume as a percentage of FINRA’s
high-grade TRACE trading volume increased to an estimated 13.6%, compared to
an estimated 12.2% for the fourth quarter of 2011.

All other revenue, which consists of technology products and services,
information and user access fees, investment income and other revenue,
decreased to $6.2 million, compared to $6.4 million for the fourth quarter of
2011.

Total expenses for the fourth quarter of 2012 increased 9.9% to $28.9 million,
compared to $26.3 million for the fourth quarter of 2011. The increase in
expenses during the fourth quarter of 2012 was primarily due to higher
professional and consulting fees and employee compensation and benefits costs.
Fourth quarter 2012 expenses included approximately $1.0 million of Xtrakter
acquisition-related costs. Fourth quarter 2011 expenses included an accounts
receivable allowance provision and minority investment write-off aggregating
approximately $1.5 million.

The effective tax rate for the fourth quarter of 2012 was 4.9%, compared to
38.8% for the fourth quarter of 2011. Excluding the impact of the
non-recurring favorable income tax adjustment, the effective tax rate for the
fourth quarter was 36.3%.

Employee headcount as of December 31, 2012 was 240, compared to 232 as of
December 31, 2011.

Full Year 2012 Results

Total revenues for the year ended December 31, 2012 increased 9.4% to a record
$198.2 million, compared to $181.1 million for 2011. Pre-tax income was a
record $86.7 million, compared to $78.7 million for 2011, an increase of
10.1%. Pre-tax margin was 43.7%, compared to 43.5% for 2011. Net income
totaled $60.1 million, or $1.59 per share on a diluted basis, compared to
$47.7 million, or $1.20 per share on a diluted basis, for 2011. Excluding the
income tax adjustment, net income totaled $53.3 million, or $1.41 per share on
a diluted basis.

Commission revenue for the year ended December 31, 2012 increased 12.1% to
$174.2 million, compared to $155.4 million for 2011. Variable transaction fees
increased 25.3% to $114.9 million on total trading volume of $589.6 billion,
compared to variable transaction fees of $91.7 million on total trading volume
of $525.0 billion for 2011.

All other revenue decreased 6.4% to $24.0 million, compared to $25.7 million
for 2011. The decrease was primarily due to lower technology license purchase
and professional consulting revenues.

Total expenses for the year ended December 31, 2012 increased 8.9% to $111.5
million, compared to $102.4 million for 2011. The increase was primarily due
to higher professional and consulting fees of $2.9 million, technology and
communications expense of $1.9 million, and employee compensation and benefits
expense of $1.6 million. Capital spending for the year ended December 31, 2012
was $10.4 million compared to $7.2 million in 2011.

The effective tax rate for 2012 was 30.7%, compared to 39.4% for 2011.
Excluding the income tax adjustment, the effective tax rate for 2012 was
38.5%.

Dividend

The Company’s board of directors declared a quarterly cash dividend of $0.13
per share of common stock outstanding, to be paid on February 28, 2013 to
stockholders of record as of the close of business on February 14, 2013. This
represents an increase of $0.02 per share in the quarterly cash dividend.

Share Repurchase Program Update

In October 2011, the Company’s board of directors approved a $35million share
repurchase program. A total of 85,203 shares were repurchased in the fourth
quarter of 2012 at a cost of $2.5 million.

Balance Sheet Data

As of December 31, 2012, total assets were $279.8 million and included $180.1
million in cash, cash equivalents and securities available-for-sale. Total
stockholders’ equity as of December 31, 2012 was $242.7 million.

Guidance for 2013

Excluding the impact of the pending acquisition of Xtrakter, the Company
expects total expenses for 2013 to be in the range of $118.0 million to $123.0
million and its full year 2013 capital spending to be in the range of $10.0
million to $13.0 million. The Company also anticipates that the overall
effective tax rate for 2013 will be between 38% and 40%.

Non-GAAP Financial Measures

EBITDA and adjusted diluted earnings per share are non-GAAP financial
measures. The Company believes that these non-GAAP financial measures, when
taken into consideration with the corresponding GAAP financial measures, are
important in understanding the Company's operating results. See the attached
schedules for reconciliations of GAAP to the corresponding non-GAAP measure.

Webcast and Conference Call Information

Richard M. McVey, chairman and chief executive officer, and Antonio L. DeLise,
chief financial officer, will host a conference call to discuss the Company’s
financial results and outlook on Wednesday, January 30, 2013, at 10:00 a.m.
Eastern time. To access the conference call, please dial 800-599-9829 (U.S.)
or +1 617-847-8703 (international). The passcode for all callers is 19670028.
The Company will also host a live audio Webcast of the conference call on the
Investor Relations section of the Company's website at
http://investor.marketaxess.com. A replay of the call will be made available
by dialing 888-286-8010 (U.S.) or +1 617-801-6888 (international) for one week
after the announcement. The passcode for replay callers is 22447528. The
Webcast will also be archived on http://investor.marketaxess.com for 90 days
following the announcement.

About MarketAxess

MarketAxess operates a leading electronic trading platform that enables
fixed-income market participants to efficiently trade corporate bonds and
other types of fixed-income instruments using MarketAxess’ patented trading
technology. Over 1,000 investor and broker-dealer firms are active users of
the MarketAxess trading platform, accessing global liquidity in U.S.
high-grade corporate bonds, European bonds, high yield and emerging markets
bonds, agency bonds, asset-backed and preferred securities and credit default
swaps. MarketAxess also offers a number of trading-related products and
services, including: market data to assist clients with trading decisions;
connectivity solutions that facilitate straight-through processing; technology
services to optimize trading environments; and execution services for
exchange-traded fund managers and other clients.

MarketAxess maintains its headquarters in New York and has offices in London,
Chicago, Salt Lake City, Hong Kong, Singapore and São Paulo. For more
information, please visitwww.marketaxess.com.

Cautionary Note Regarding Forward-Looking Statements

This press release may contain forward-looking statements, including
statements about the outlook and prospects for Company and industry growth, as
well as statements about the Company’s future financial and operating
performance. These and other statements that relate to future results and
events are based on MarketAxess’ current expectations. Actual results in
future periods may differ materially from those currently expected or desired
because of a number of risks and uncertainties, including: the level and
intensity of competition in the fixed-income electronic trading industry and
the pricing pressures that may result; the variability of our growth rate; the
rapidly evolving nature of the electronic financial services industry; the
level of trading volume transacted on the MarketAxess platform; the absolute
level and direction of interest rates and the corresponding volatility in the
corporate fixed-income market; our ability to develop new products and
offerings and the market’s acceptance of those products; our exposure to risks
resulting from non-performance by counterparties to transactions executed
between our clients in which we act as an intermediary in matching
back-to-back trades; our dependence on our broker-dealer clients; our ability
to enter into strategic alliances and to acquire other businesses and
successfully integrate them with our business; our future capital needs and
our ability to obtain capital when needed; and other factors. The Company’s
actual results and financial condition may differ, perhaps materially, from
the anticipated results and financial condition in any such forward-looking
statements. The Company undertakes no obligation to update any forward-looking
statements, whether as a result of new information, future events or
otherwise. More information about these and other factors affecting
MarketAxess’ business and prospects is contained in MarketAxess’ periodic
filings with the Securities and Exchange Commission and can be accessed at
www.marketaxess.com.

                                                              
MarketAxess Holdings Inc.
Consolidated Statements of Operations
                                                                  
                       Three Months Ended                Twelve Months Ended
                       December 31,                      December 31,
                                                                        
                       2012             2011             2012              2011
                       (In thousands, except per share data)
                                                                           
                       (unaudited)
                                                                           
Revenues
Commissions            $ 44,228         $  38,759       $ 174,199         $  155,444
Technology
products and             3,244              3,439          12,351              14,310
services
Information and          1,878              1,960          7,435               7,199
user access fees
Investment               236                317            1,058               1,229
income
Other                   801             659           3,161            2,917
Total revenues          50,387          45,134        198,204          181,099
                                                                           
Expenses
Employee
compensation and         14,579             13,707         60,361              58,786
benefits
Depreciation and         2,337              1,793          8,233               6,781
amortization
Technology and           3,534              2,916          12,766              10,912
communications
Professional and         4,018              2,354          13,081              10,138
consulting fees
Occupancy                764                726            3,012               2,921
Marketing and            1,224              1,380          5,470               4,882
advertising
General and             2,402           3,393         8,595            7,946
administrative
Total expenses          28,858          26,269        111,518          102,366
                                                                           
Income before            21,529             18,865         86,686              78,733
taxes
Provision for           1,064           7,323         26,617           31,029
income taxes
Net income             $ 20,465        $  11,542       $ 60,069         $  47,704
                                                                           
Per Share Data:
Earnings per
share:
Basic                  $ 0.56           $   0.31         $ 1.65            $   1.29
Diluted (1)            $ 0.54           $   0.29         $ 1.59            $   1.20
                                                                           
Cash dividends
declared per           $ 1.41           $   0.09         $ 1.74            $   0.36
common share
                                                                           
Weighted-average
common shares:
Basic                    36,501             37,629         36,516              37,006
Diluted                  37,589             39,814         37,816              39,608
                                                                           
(1) Non-GAAP
Financial
Measure
Diluted earnings
per share, as          $ 0.54           $   0.29         $ 1.59            $   1.20
reported
Adjustment to
unrecognized tax        (0.18  )         -             (0.18   )         -
benefits
Non-GAAP diluted
earnings per           $ 0.36          $  0.29         $ 1.41           $  1.20
share
                                                                           

                                                    
MarketAxess Holdings Inc.
Consolidated Condensed Balance Sheet Data
                                                            
                                     December 31, 2012       December 31, 2011
                                     (In thousands)
                                                             
                                     (unaudited)
Assets
Cash and cash equivalents            $      128,908       $      169,620
Securities                                     51,208                  78,110
available-for-sale
Accounts receivable, net                       31,044                  36,170
All other assets                           68,681              65,558
Total assets                         $      279,841       $      349,458

Liabilities and
Stockholders' Equity
                                                             
Total liabilities                    $         37,124        $         37,019
Total stockholders' equity                 242,717             312,439
Total liabilities and                $      279,841       $      349,458
stockholders' equity
                                                             

                                                         
MarketAxess Holdings Inc.
Reconciliation of Non-GAAP Financial Measures
                                                             
                   Three Months Ended                Twelve Months Ended
                   December 31,                      December 31,
                                                                   
                   2012             2011             2012             2011
                   (In thousands, except per share data)
                                                                      
                   (unaudited)
                                                          
                   EBITDA
                                                                      
Net income         $  20,465       $  11,542       $  60,069       $  47,704
                                                                      
Add back:
Interest               (84)             13               45               58
expense
                                                                      
Provision
for income             1,064            7,323            26,617           31,029
taxes
                                                                      
Depreciation
and                  2,337          1,793          8,233          6,781
amortization
                                                                      
Earnings
before
interest,
taxes,
depreciation
and
amortization       $  23,782       $  20,671       $  94,964       $  85,572
(EBITDA)
                                                                      
                                                          
                   Adjusted Diluted Earnings Per Share
                                                                      
Diluted
earnings per       $   0.54         $   0.29         $   1.59         $   1.20
share, as
reported
                                                                      
Adjustment
to                   (0.18)         -              (0.18)         -
unrecognized
tax benefits
                                                                      
Non-GAAP
diluted            $  0.36         $  0.29         $  1.41         $  1.20
earnings per
share
                                                                      

                                                         
MarketAxess Holdings Inc.
Volume Statistics

                                                               
                        Three Months Ended              Twelve Months Ended
                        December 31,                    December 31,
                                                                     
                        2012            2011            2012            2011
                                                            
                        Total Trading Volume
                        ($ in millions)
                        
                        (unaudited)
U.S.
high-grade -
multi dealer
^1
fixed-rate              $ 89,211        $ 73,181        $ 355,087       $ 311,758
floating-rate             3,499           2,278           12,603          11,802
Eurobond                  7,995           8,042           34,538          36,933
Other^1,2                48,373         41,699         187,368        164,514
Total                   $ 149,078       $ 125,200       $ 589,596       $ 525,007
                                                            
                        Average Daily Volume
                        ($ in millions)
                        
                        (unaudited)
                                                                        
U.S.                    $ 1,545         $ 1,237         $ 1,483         $ 1,294
high-grade^1
Eurobond                  125             128             137             147
Other^1,2                806            684            756            658
Total                   $ 2,476         $ 2,049         $ 2,376         $ 2,099
                                                                        
Number of
U.S. Trading              60              61              248             250
Days ^ 3
Number of
U.K. Trading              64              63              252             251
Days ^ 4
                                                            
                        Average Variable Transaction Fee Per Millon
                                                                        
                        (unaudited)
U.S.
high-grade -
multi dealer
fixed-rate              $ 200           $ 195           $ 202           $ 190
floating-rate            45             27             34             22
Total U.S.                193             190             197             183
high-grade
Eurobond                  80              92              73              99
Other                    232            166            214            175
Total                   $ 200           $ 175           $ 195           $ 175


1 Consistent with FINRA TRACE reporting standards, both sides of trades are
included in the Company's reported volumes when the Company executes trades on
a riskless principal basis between two counterparties.
2 Effective January 2012, the Company no longer reports credit default swaps
trading volumes.
Credit default swap volumes previously reported in "Other" trading volume have
not been removed.
3 The number of U.S. trading days is based on the SIFMA holiday recommendation
calendar.
4 The number of U.K. trading days is based on the U.K. Bank holiday schedule.


Contact:

Media and Investor Relations:
MarketAxess Holdings Inc.
Tony DeLise, +1-212-813-6017
or
Florencia Panizza, +1-212-813-6029
or
William McBride & Associates
William McBride, +1-917-239-6726
 
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